Following are the merchandising transactions for Dollar Store. Nov. 1 Dollar Sto
ID: 2402658 • Letter: F
Question
Following are the merchandising transactions for Dollar Store. Nov. 1 Dollar Store purchases merchandise for $2,100 on terms of 2/5, n/30, FOB shipping point, invoice dated November 5 Dollar Store pays cash for the November 1 purchase. 7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. 10 Dollar Store pays $105 cash for transportation costs for the November 1 purchase 13 Dollar Store sells merchandise for $2,268 with terms n/30. The cost of the merchandise is $1,134. 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $210 and cost $105; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.Explanation / Answer
General Journal
Date
Accounts
Debit ( in $s)
Credit ( in $s)
Nov 1
Inventory
2100
Accounts payable
2100
Purchased inventory for resale
Nov 5
Accounts payable
2100
Cash
2058
inventory
42
Paid for inventory within discount period
Nov 7
Cash
200
Inventory
200
Returned inventory to supplier for which cash was paid and get refunded
Nov 10
Inventory
105
Cash
105
Transportation cost were paid on Nov 1st purchases
Nov 13
Account receivable
2268
Sales
2268
Cost of goods sold
1134
Inventory
1134
Sold $1134 cost of goods for a price of $2268 on account
Nov 16
Sales returns and allowances
210
Cash
210
Customer returned goods and refunded full
Inventory
105
Cost of goods sold
105
Returned goods are resalable and placed back in to inventory
General Journal
Date
Accounts
Debit ( in $s)
Credit ( in $s)
Nov 1
Inventory
2100
Accounts payable
2100
Purchased inventory for resale
Nov 5
Accounts payable
2100
Cash
2058
inventory
42
Paid for inventory within discount period
Nov 7
Cash
200
Inventory
200
Returned inventory to supplier for which cash was paid and get refunded
Nov 10
Inventory
105
Cash
105
Transportation cost were paid on Nov 1st purchases
Nov 13
Account receivable
2268
Sales
2268
Cost of goods sold
1134
Inventory
1134
Sold $1134 cost of goods for a price of $2268 on account
Nov 16
Sales returns and allowances
210
Cash
210
Customer returned goods and refunded full
Inventory
105
Cost of goods sold
105
Returned goods are resalable and placed back in to inventory